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This paper examines some of the fundamental economics of mining - in particular, for optimisation studies, for production rate determination and for reserve estimates.It includes introductory discussion on the principles as to how economics drives mining investment decision-making, applicable to the optimising of pit shapes and production, or truck fleets, or any other part of the mine.The main part of this paper looks at the decision to start-up a mine and why the 'optimum' production rate to start-up a mine is not the point of lowest cost according to traditional discounted cash flow (DCF) analysis. The optimum production rate is usually substantially less than this rate. The paper recognises the difference between typical mining investments and investments in other industries that do not have the unique characteristics of mining and the problem of uncertainty resolution. It examines the marginal revenue effects, the marginal cost of capital and the value of a real option to expand pending uncertainty resolution as determinants of optimum initial production rates.The final part of this paper looks at applying these principles to renewable and non-renewable resources. It examines mine life and reserve estimates from an economic perspective.

Dec 6, 2010

Variations in product distribution in the carbon-sulphur dioxide system due to variations in reaction temperature, sulphur dioxide concentration in the feed gas, and gassolid contact time were studied in detail for a brown coal char. The results were compared with those for two wood chars, a coke prepared from Liddell coal and two cokes prepared from Ac1and coal. Conditions were chosen such that gas-solid diffusion rates did not hinder chemical attack of the carbon.With brown coal char under suitable conditions, the selectivity of sulphur in the sulphur dioxide fed, to either elemental sulphur or carbon disulphide, was in excess of 90 per cent. The wood chars gave very similar product distributions Ito brown coal char. However, the cokes from Ac1and and Liddell coals were respectively approximately three and seven times less reactive than the brown coal char.The approximate carbon holdup required to just achieve total conversion of sulphur dioxide, and thereby achieve high selectivity to elemental sulphur, is given as a function of reaction temperature.

Jan 1, 1974

A comparison is made between elementary block estimation techniques and the optimal methods of geostatistics using data from an Australian deposit. Considerable improvement in the estimates are obtained by using the optimal technique in this case.

Jan 1, 1975

The ultraviolet spectrum of isopropyl ethylthionocarbamate (the principal constituent of Dow flotation collector Z-200) in water and of Z-200 itself in water was found to have an absorption peak at 242 nanometers(nm). The height of this peak was found to be directly proportional to isopropyl ethylthionocarbamate concentrations up to 15 p.p.m. Z-200 contains about 90 per cent isopropyl ethylthionocarbamate and the heightof the peak was proportionately lower, but obeyed the straight line relationship up to 15 p.p.m. This showed the potential value of spectrophotometric measurements for the determination of Z-200 residuals in flotation liquors.Methyl ethyldithiocarbamate (an impurity in Z-200) increased the peak height slightly, but other impurities in Z-200, xanthates, and most inorganic salts present in flotation liquors do not interfere. However nitrate ion and thiosulphate ion have absorption peaks which overlap the isopropyl ethylthionocarbamate peak.The simplest general method to overcome this effect is to extract the isopropyl ethylthionocarbamate into cyclohexane and to measure the absorbance of the extract.The maximum absorbance of the cydohexane extract was at 247 nm and the peak height at this wavelength was found to be directly proportional to the isopropyl ethylthionocarbamate or Z-200 concentration in the original aqueous solution. An alternative method is to measure the spectrum of the original aqueous solution using the aqueous raffinate from extraction as a reference solution. This gives the spectrum due to isopropyl ethylthionocarbamate alone and measurement of the absorbance at 242 nm gives the concentration in the original aqueous solution. Both methods give the same value for the concentration of isopropyl ethylthionocarbamate in the original solution.

Jan 1, 1969

Advanced Jig Separation of Shredded Plastics The authors have reported that the RETAC jig is very useful in separating relatively low density particles such as plastics, and demonstrated that highly efficient jig separation of plastic components in discarded office machines is possible in pilot-scale tests. To further improve the separation efficiency, a hybrid jig (RETAC jig with air bubbler under the particle bed) which can separate plastics having similar specific gravities using differences in wettability produced by a pretreatment, and a reverse jig (modified RETAC jig for plastics lighter than water) were developed. This paper reviews the separation of shredded plastics using advanced jig separation technology (RETAC, hybrid and reverse jigs). Wettability control of the plastics for the advanced jig separation is also reported.

Sep 13, 2010

Mount Isa Mines Limited first installed electronic data processing equipment in 1959. The decision to replace this equipment with a computer was motivated by the need for greater processing power and the availability of new and less expensive computers. Consideration of hardware software and delivery features of available equipment, resulted in the selectIon of an ICT 1900 series computer which was installed in March 1966. Special air-conditioning and power stabilization equipment was also required.Systems design and programming was carried out by personnel recruited from within the Company and trained by the computer manufacturer. Early work was hindered by the problems of remote location.Initial applications were basically accounting functions whIch were taken over from the EDP installation. Subsequently computer applIcatIOns of a more complex technical nature have been undertaken. Future work will include both "scientific" and data processing applications.

Jan 1, 1968

This paper presents a resume of the likely profitable mining areas in New Zealand. It covers the main 'minerals' û gold, coal, oil and gas, ironsands, silica sands, clays, lump silica, perlite, sulphur and limestone. The potential mining projects are depicted on a map of New Zealand together with the associated works involved in hydro-electric and geothermal power development requirement for industries such as aluminium, nickel ferro-silicon or silicon carbide production. The political need for mining development to relieve unemployment and reverse emigration is stressed. A case is made for exploration and development assistance by government in labour re-training, energy supply and transportation, if the tremendous losses through lack of use of human and industrial resources are to be rapidly reduced. These losses are currently estimated at $10 000 000 000 per year. The need for protection of the sanctity of contract and security of tenure of all mining operations is touched on briefly as is the need for a reasonably balanced view on conservation. However, as both of these are more properly covered in papers on the legal and environmental aspects of the mining climate, they are presented here only as they affect the economy of the mining operation. Finally, there is a brief comment on the mining climate in New Zealand relative to Australia and South Pacific mining operations.

Jan 1, 1990

The variation of carbon monoxide and hydrogen utilization with the amount of the reductant in the blast furnace bosh gas was investigated for the No. 4 blast furnace at The Broken Hill Proprietary Co. Ltd.iron and steel works. Newcastle. The degree of CO utilization decreased with increasing CO in the bosh gas; the H., utilization increased with the H., content of the gas. Empirical relationships for CO and H., utilization are proposed.H2, is 3-6 times as effective a reductant as CO at present levels of CO (34-39 per cent) and H2 (6-10 per cent) in blast furnace bosh gas. H2, gas injection into the blast furnace is proposed as a means of lowering the coke consumption, and the economics of H2 injection are evaluated.

Jan 1, 1975

Paiam is a new township in the high mountains of Papua New Guinea built in association with the Porgera Joint Venture mine, one of the world's largest and most remote open cut gold mines. The Paiam town project is an interesting and genuine attempt at building sustainability into a community associated with a mine. A result of a tri-party agreement between a resource developer, government and land owners, this town is a good example of appropriate utilisation of benefits, obtained from resource development, directed at achieving a sustainable environment at local and regional levels.   Mining brought technology and income to the region, although as most mine staff fly directly in and out, local landowners considered there was a limited flow of benefits within the nearby townships. An agreement with government and mine was reached that more mine personnel and their families be housed locally. In 1998, we, a firm of Landscape Architects and Heritage Consultants based in Cairns, Queensland, were engaged to assist develop the fledgling town of Paiam into a livable and sustainable town and to produce material that would convey that information to stakeholders.   The design focused on establishing a sustainable town, with livability, urban form, aesthetics and opportunities for economic, social and cultural development. Aiming to be a livable town for locals and mine staff it included a market place designed as a focus for town life, essential for social cohesion and economic opportunities.   Located at 2200 m on steep rainforest clad topography, the town development has been laid out using an appropriate urban form based on organic village layouts. Clusters of houses allow for a common public area so children's play is monitored assisting with a sense of community similar to a traditional defensible village. Aesthetical consideration helps in developing community pride whilst maximising potential for development of a tourist industry.   Opportunities for ongoing economic development were incorporated in the design and construction process. These included developing skills and trades to service the region and to provide skills, development, income opportunities and infrastructure to last beyond mine closure. Administration procedures were set in place to form the basis of good governance.   The shift from traditional subsistence lifestyle to a sustainable community with traditional attributes was the project's goal and is being achieved.

Jun 1, 2010

By H M. Ahmed, W S. Dunbar

Construction of cave mining systems requires significant capital expenditure and long-term commitment of human, equipment and material resources before production commences. Risks and uncertainties of these large-scale mining projects are significantly higher than for small-scale projects. This is due to the complexity and interactions of the construction schedule components and the large scale and uniqueness of such projects. One way to successfully manage construction uncertainties that would lead to schedule delays is to include a reasonable cost contingency in the budget estimation. A real options approach based on the least-squares Monte Carlo (LSM) method is used to estimate cost contingency associated with schedule uncertainty in mass mining projects. Cost contingency is estimated as the cost of potential project crashing (acceleration) decisions, which pays for not extending the schedule. While such a significant undertaking is expected to be subject to some delays, these can have an enormous impact on the economic value of such projects. The value of the crashing option was explicitly formalised into the process of valuation, as it is assumed to be a single option being considered in the valuation at every decision point prior to the construction completion date. As a part of the proposed method, a stochastic function for the percentage of remaining scope of work for the remaining duration of the entire project was integrated into a framework of numerical simulations. This ensured that this function can implicitly account for sources of schedule uncertainties for projects represented by multiple and overlapping work packages. The LSM method was applied to a real case scenario in an operating block cave mine, with modified scale and features. The results yielded by the LSM method indicated that significant changes in capital budget allocation stem from variation in a contractor’s risk perception and confidence level of estimated delays.CITATION:Ahmed, H M and Dunbar, W S, 2016. Budget estimation and contingency allocation of block cave construction using least-squares Monte Carlo real options, in Proceedings Seventh International Conference and Exhibition on Mass Mining (MassMin 2016), pp 801–808 (The Australasian Institute of Mining and Metallurgy: Melbourne).

May 9, 2016

By S McKinley

"The White Mountain sediment-hosted gold deposit is located in north-eastern China. Mineralisation is associated with silica–hematite–altered polymict breccias that occur within dolomite at or near the contact with overlying sandstone. Economic gold grades are controlled by the distribution of the polymict breccias and can transition rapidly to low or zero grade over short distances. This results in sharp and highly irregular ore contacts on whose accuracy proper stope design and ore control is reliant at this blasthole underground mine.Short-term planning and ore control utilise a grade control model created from infill drilling and grade control sampling (ie face and wall sampling). Typically, the grade control model was maintained by time-consuming manual editing of earlier made contacts to incorporate any new data. This approach also was quite error-prone due to: the complexity of the breccia and ore grade contacts irregularly oriented and/or insufficiently dense drill holes inconsistent incorporation of grade control sampling. These errors resulted in unplanned dilution and ore loss due to inaccurate interpretation of the ore contacts.The primary advantage to implicit geological models over conventional, manually-built wireframe models is that they can be updated very quickly and frequently. In a mine setting, the power and efficiency of using an implicit model is greatest where the use of manual inputs or editing can be minimised. Recently a workflow was set-up for the mine geology team to create an implicitly-modelled ore shape for short-term planning needs by using all data, especially all grade control samples. The resultant 3D shapes provided metre-scale accuracy and consistently reconciled complex ore geometries much faster and to a higher degree of quality relative to the wireframe model. The mine stakeholders can now obtain an accurate ore model that will always be in sync with available data.CITATION:McKinley, S, 2017. Application of implicit geological modelling to improve the grade control process at White Mountain gold mine, Jilin Province, China, in Proceedings Tenth International Mining Geology Conference 2017, pp 385–392 (The Australasian Institute of Mining and Metallurgy: Melbourne)."

Sep 20, 2017

FREQUENTLY the Survey Department is caIled upon to estimate the quantity of material in various dumps, dams piles, etc... and in the carrying out of this work various methods may be employed.The method used will vary according to the particular case in hand, and factors such as accessibility of the top of the dump, steepness of its sides, height, and the condition of the material to be estimated. A certain amount of "give and take" must be adopted in the treatment of small local cavities and mounds.In all cases it is desirable that the surveys made should be tied on to the lease surveys for the purpose of location, and that all levels should be reduced to the mine datum. It is also desirable to obtain levels of the original surface before deposition of the material to be estimated. If these have not been obtained beforehand, levels and transfers round the top will be the next best. If space is availabIe, flat surface is chosen as a site for the dump, etc. This is of the utmost importance in those cases where the material will have to be...

Jan 1, 1925

Modem mineral exploration and development takes place within a data-rich context underpinned by a wide range of data acquisition, processing and interpretation technologies. This leads to requirements for consistent and explicit methods by which the relative risks - or success probabilities - of exploration programs can be assessed and communicated. Bayesian risk assessment methods are outlined which provide a starting point for this more rigorous approach to exploration investment.   Effective governance of information technologies becomes a core function of the modem competitive Board. As such it becomes a component of any business audit and any assessment of the quality and success potential of a company. Limited data however suggest that the average Board may be under-represented in this increasingly critical skill area.

Jan 1, 1997

This paper describes the economic study of longwall versus bord and pillar mining using all continuous miners for a colliery located at the South Coast district of New South Wales, Australia. In this district longwall mining appears to be a better economic proposition than bord and pillar. The internal rate of return on investment is found to remain approximately constant for each method irrespective of life. The economic importance of percentage extraction of coal is shown to be small for high values of minimum rates of return, becoming more significant as the minimum rate of return decreases.

Jan 1, 1980

THE furnace described in this paper was installed and has been used by the writer for the melting of rich gold-bearing material, and has given complete satisfaction. It may, therefore, prove of interest to other metallurgists who are faced with a similarproblem. A furnace of this type should be most suitable for the reduction of "cyanide preeipitate," "charcoal ash," "anode sludge," &c. formerly the melting was done in fire-clay crucibles, using coke or crude oil as fuel, but this method is costly, slow, and unsatisfactory. A small water-jacketed blastfurnace was also tried on this material after briquetting it, but was discarded in favour of the electric furnace. The furnace may be described as a simple form of the Heroult resistance furnace, with an adjustable upper electrode and a fixed bottom electrode. This is in accordanee with Stansfield's classification of electric furnaces. The heating is mostly due to the resistance offered the current by the molten slag. The melting chamber consists of a steel drum 14 in. in diameter and 21 in. high, and is lined with silica bricks specially made to fit the shell. The internal diameter is G in. The bricks contain 92 % silica, are made from calcined quartzite bonded with fireclay, and are similar in composition to those used for lining steel converters. They are set in a mixture of finely-ground quartzite and clay, and well dried out. The shell is bolted to a steel plate, which forms the decking of a truck running on rails, so that the furnace can be moved under ahood for carrying off the fumes. A cast-iron slag spout is bolted to the shell below the tapping hole, which is 4 in. from the bottom of the shell. Opposite this another hole 1 in. in diameter is drilled through the shell and lining for the passage of the lower...

Jan 1, 1918

By A G. Thompson, E Villaescusa, A De Zoysa, J R Player

Ground support performance is critical to the safe and economical extraction of ore. This is particularly important for mass mining extractions at great depth, which are currently being considered by a large number of mining companies worldwide. As the in situ stresses concentrate around critical excavations, failure occurs at the excavation boundaries and ground support is required for the excavations to remain safe and accessible for their intended lifespan. Ground support consists of reinforcing elements that are installed within the rock mass to modify its internal behaviour (generally to within one excavation radius) and surface support elements that are installed at the exposed boundaries to retain the failed pieces of rock. For surface support to be effective, the loadings need to be transferred to the reinforcing elements; however, the combined performance of rock bolts and mesh is poorly understood in terms of the energy dissipation capacity available for a typical ground support scheme implemented at most mass mining operations.Over the last 15 years or so, a large number of large-scale laboratory experiments have been completed at the Western Australian School of Mines (WASM) Dynamic Test Facility for reinforcement systems and surface support systems loaded separately. The objective of more recent testing has been to establish the combined energy dissipation capacity of typical and enhanced reinforcement systems combined with mesh surface support. Total energy dissipation has been separated into energy dissipation attributable to the reinforcement and to the mesh. The results of the tests are presented and compared with the existing WASM design demand and capacity guidelines.CITATION:Villaescusa, E, De Zoysa, A, Player, J R and Thompson, A G, 2016. Dynamic testing of combined rock bolt and mesh schemes, in Proceedings Seventh International Conference and Exhibition on Mass Mining (MassMin 2016), pp 789–798 (The Australasian Institute of Mining and Metallurgy: Melbourne).

May 9, 2016

Taking the third meridian as the eastern boundary of proved payable auriferous country, there is a stretch of country, nearly 600 miles in width, in which no appreciable amount of gold has yet been discovered. Many prospectors have attempted to .penetrate or traverse it, but comparatively few have thought it worth while proceeding with the examination.The desolate stretch of waterless desert-the very few and insignificant outcrops through the sand and the almost total absence of feed for horses have, combined, presented such a barrier as to preclude prospecting. The few who have traversed the country are eloquent in denunciation, yet their investigations, necessarily hurried, are not quite satisfactory. The absence of water utterly debars a thorough examination being made. Gold may exist in quantity, yet it would have to be extraordinarily plentiful to render its obtaining profitable. Too fantastic is the idea of its ever being a mining district; shifting sand to traverse, utter absence of wood and water render the notion absurd. Likely looking belts occur, but these in all "cases are small and remote from water. Gold has been obtained from likely look ing quartz reefs, but only by fire assay, and then but a few do to the ton. Without wishing to be pessimistic, I would unhesitatingly declare that east of the third meridian, and between the parallels 25 and 30 degrees in West Australia, there is no gold in payable quantities.

Jan 1, 1901

By J S-L Chan

"An EXTENDED ABSTRACT is available for download. A full-length paper was not prepared for this presentation. Cu-Ag-Au mineralisation at Kluwih prospect in Eastern Java, Indonesia is related to a high-sulfidation hydrothermal system within a volcanic dome (2.35 × 1.7 km diameter). The mineralisation occurs mainly in steeply dipping, structurally-controlled quartz-enargite-pyrite veins (several centimetres to 2 m wide) and is hosted mainly in porphyritic dacite, volcaniclastic rocks and volcanic breccia of the dome and in an underlying andesite that yielded a zircon U-Pb age of 11.5 Ma.Short wave infrared spectrometer analyses were carried out for alteration mapping at Kluwih. There are two main stages of alteration produced by the hydrothermal activity. The alteration mineral assemblages indicate an advanced argillic alteration. The Cu mineralisation occurred in the form of enargite and subordinate chalcopyrite with an intergrown texture in the early stage. These mineralised veins are characterised by narrow pyrophyllite ± diaspore and dickite selvages (metres wide) and a peripheral K-muscovite envelope (sericitic alteration) up to 100 m wide. The K-muscovite envelope is zoned outward to Na-muscovite or Na-illite. Late-stage kaolinite and smectite alteration overprints the porphyritic dacite and may obscure the nature of early mica-clay alteration. The spatial distribution of different alteration assemblages suggests that the temperature of hydrothermal fluid increases with depth.Both the high-sulfidation mineralisation and advanced argillic alteration are suggested to be related to magmatic-hydrothermal fluids, which are likely to originate from an undiscovered deeper porphyry Cu-Au system below the porphyritic dacite. Based on alteration mapping results and comparisons to similar deposits, the porphyry intrusion could be up to 500 m below the volcanic dome. Further geochemical and mineralogical studies may help to target the potential underlying porphyry system.CITATION:Chan, J S-L, 2015. High-sulfidation epithermal Cu-Ag-Au deposit, Kluwih, eastern Java, Indonesia – alteration and implications for potential porphyry cu mineralisation, in Proceedings PACRIM 2015 Congress, pp 213–218 (The Australasian Institute of Mining and Metallurgy: Melbourne)."

Mar 18, 2015

By Wilson A. F

The use of stable isotopic measurements as a technique for elucidating the origin and history of the water in hydrothermal fluids is relatively new. Recept studies have emphasized the importance of meteoric water in the formation of many hydrothermal ore deposits including many epithermal gold-base metal deposits which occur in faulted volcanic terrane. Other vein-type gold ores are believed to have formed from fluids of magmatic or metamorphic origin and exhibit characteristic d18O values. Preliminary oxygen and carbon isotopic data for some important gold deposits of eastern Australia have emphasized the diverse origins of their ore fluids.The Mount Morgan gold-copper orebody is shown to be of the volcanogenic massive sulphide type with ore fluids predominantly of sea water origin. The Charters Towers fissure veins formed during hydrothermal activity associated with intrusion of Lolworth Igneous Complex equivalents. Oxygen isotopic studies of the quartz reefs at Stawell and Gympie have been inconclusive. The ore fluids have a d18O value of about 7 per mil and may be of magmatic or metamorphic derivation.

Jan 1, 1981

By K Morrison

Australia’s ageing population means that by 2050 there will be 2.7 people of working age to support each Australian aged 65 years and over compared with five working people per retiree today and compared with 7.5 in 1970 (Swan, 2010). This means that there is going to be a greater demand on social services – for medical and aged care – from a smaller private income base. How will this gap be met? Australia is fortunate in that it has vast resources of mineral wealth; from iron ore, nickel and gas in Western Australia to the giant copper and uranium deposits at Olympic Dam in South Australia.The prospect of a meaningful profit based tax on this vast mineral wealth has been lost through Australian government’s handling of the issue in 2010 and with an industry fiercely opposed to the prospect of a mining tax. Hence, new ways of thinking are required. This paper looks at the issues facing the implementation of a novel scheme whereby Australia leases the mineral resources it extracts and thus derives income over the decades the metals are in-use in pipes, wires and structures with a premium paid for unreturned material or that used in dissipative applications. Applicable minerals could include copper, aluminium, nickel and rare earths. If Australia simply digs up and sells the metals once, the buyer becomes custodian of that resource and they benefit from controlling the future ‘above-ground’ resource stock.A complementary driver for a leasing scheme is the increasing importance of chain-of-custody following initiatives of the Responsible Jewellery Council with gold and diamonds, now with the potential to extend across commodities. The Australian minerals sector could thus position itself as a premium supplier with high social and environmental credentials.Recognising the implementation challenges, this paper includes a review of how such a system could be enforced to ensure that the metal is tracked throughout its life. It concludes with a discussion of the rates and terms should such agreements hold and suggestions for institutional arrangements for enforcing compliance.

Nov 22, 2011